Omega Flex (OFLX) AI Stock Analysis

• Market Cap: $356.94M
• Dividend Yield: 3.82%
• Average Volume (3M): 26.81K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.86
• Revenue Growth: -8.78%
• EPS Growth: -13.24%
• Country: US
• Employees: 175
• Sector: Industrials
• Sector Strength: 65
• Industry: Industrial - Machinery
• EPS (TTM): 1.78
• Shares Outstanding: 10,094,322
• 10 Day Avg. Volume: 34,144
• 30 Day Avg. Volume: 26,811
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.87
• Price to Cash Flow (P/CF): 10.10
• P/FCF Ratio: 9.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Omega Flex maintains a strong financial position with robust cash flows and a debt-free balance sheet, which are significant strengths. However, declining revenues and pressure on profit margins pose challenges. The technical analysis suggests a cautious approach due to bearish trends, but the stock's valuation and dividend yield provide some support.

Omega Flex Business Overview & Revenue Model

Company Description

Omega Flex, Inc., together with its subsidiaries, manufactures and sells flexible metal hoses and accessories in North America and internationally. It offers flexible gas piping for use in residential and commercial buildings, as well as its fittings; and corrugated medical tubing for use in hospitals, ambulatory care centers, dental, physician and veterinary clinics, laboratories, and other facilities. The company sells its products under the TracPipe, CounterStrike, AutoSnap, AutoFlare, DoubleTrac, DEF-Trac, and MediTrac brand names. It serves various markets, including construction, manufacturing, transportation, petrochemical, pharmaceutical, and other industries. The company sells its products through independent sales representatives, distributors, original equipment manufacturers, and direct sales, as well as through its website. The company was formerly known as Tofle America, Inc. and changed its name to Omega Flex, Inc. in 1996. Omega Flex, Inc. was incorporated in 1975 and is based in Exton, Pennsylvania.

How the Company Makes Money

Omega Flex, Inc. generates revenue through the design, manufacture, and sale of flexible metal hose and braid products. The company's primary revenue stream is its TracPipe line, which is extensively used in gas piping systems across multiple sectors, including residential, commercial, and industrial markets. Omega Flex leverages its robust distribution network and strategic partnerships with distributors and wholesalers to effectively reach its target customers. Additionally, the company's focus on innovation and quality ensures a competitive edge, allowing it to maintain and grow its market share, thereby contributing significantly to its earnings.

Omega Flex Financial Statement Overview

Summary

Omega Flex demonstrates solid financial health with strong cash generation and a debt-free balance sheet. While margins are under some pressure and revenue has been declining, the company remains profitable and efficient in managing its resources.

Income Statement

Omega Flex's revenue has decreased over the past two years, highlighting a challenging market environment. The gross profit margin remains strong at around 61% to 65%, indicating cost management is effective. However, the declining net profit margin from 20.5% in 2021 to 17.7% in 2024 suggests some pressure on profitability.

Balance Sheet

The company maintains a solid balance sheet with no debt as of 2024, showcasing strong financial stability. The equity ratio remains robust, indicating a high proportion of assets funded by equity. Return on equity is healthy, albeit slightly declining, reflecting consistent value generation for shareholders.

Cash Flow

Omega Flex shows strong operating cash flow, consistently exceeding net income, which indicates high-quality earnings. The free cash flow has been stable, though the growth rate has been slowing, suggesting less reinvestment in the business. The free cash flow to net income ratio remains favorable, supporting capital allocation flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
101.68M	111.47M	125.49M	130.01M	105.80M
	Gross Profit
62.26M	68.36M	78.31M	81.53M	66.55M
	EBIT
21.57M	25.80M	31.02M	35.06M	26.65M
	EBITDA
21.57M	26.90M	32.11M	36.08M	27.47M
	Net Income Common Stockholders
18.01M	20.76M	23.62M	26.20M	19.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
51.70M	46.36M	37.70M	32.91M	23.63M
	Total Assets
105.89M	100.23M	97.68M	88.92M	71.57M
	Total Debt
5.28M	2.95M	3.21M	3.37M	499.00K
	Net Debt
-46.42M	-43.41M	-34.49M	-29.54M	-23.13M
	Total Liabilities
22.71M	21.38M	26.51M	28.37M	25.19M
	Stockholders Equity
4.85M	78.69M	70.98M	60.35M	46.12M
Cash Flow		Free Cash Flow
18.85M	21.78M	14.30M	24.18M	18.75M
	Operating Cash Flow
20.86M	23.42M	15.25M	25.15M	19.31M
	Investing Cash Flow
-2.01M	-1.64M	-942.00K	-971.00K	-564.00K
	Financing Cash Flow
-13.53M	-13.12M	-9.49M	-14.87M	-11.31M

Omega Flex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OFLX, the sentiment is Negative. The current price of 34.78 is below the 20-day moving average (MA) of 38.21, below the 50-day MA of 38.44, and below the 200-day MA of 45.81, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 32.76 is Neutral, neither overbought nor oversold. The STOCH value of 6.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OFLX.

Omega Flex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITT	78 Outperform	$10.48B	20.44	19.60%	0.99%	10.59%	27.04%
WTS	77 Outperform	$6.79B	23.46	18.08%	0.84%	9.53%	10.98%
NDSN	73 Outperform	$11.41B	25.53	16.15%	1.46%	0.78%	-8.42%
OFLX	68 Neutral	$356.94M	19.81	22.27%	3.82%	-8.78%	-13.24%
MIDD	68 Neutral	$8.19B	19.23	12.44%	―	-4.00%	6.53%
AOS	63 Neutral	$9.42B	18.08	28.63%	2.01%	-0.90%	-1.69%
Sector *	62 Neutral	$8.05B	13.60	4.04%	3.11%	3.70%	-14.19%